- Most companies’ Esop policies undergo a dramatic shift once they list
- There is $7–14 billion in potential wealth to be made from new-age tech companies' Esops
- Exercise price and grant size determine how much wealth employees stand to make from stock options
- The proof of how gettable an Esop is, for an employee, is evident in its extent of lapsed units
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Meesho and Groww, the blockbuster stock-market debutants of 2025, are up for their first encounter with public shareholders and their return-coloured view of company decisions.
One of the first things they’ll weigh on is these companies’ employee stock option plans (Esops), impacting how attractive they’re as an employer post-listing.
Most companies’ Esop policies undergo a dramatic shift once they list, having to meet investor expectations.
In fact, “Esop is one matter that public investors push back the most on,” said Hetal Dalal, president and chief operating officer of the proxy-advisory firm, Institutional Investor Advisory Services (IiAS). “They question if the scheme contours align the interests of employees with their own.”
In 2025, IiAS tracked about 1,200 companies, and shareholders rejected 19 resolutions related to Esops across nine companies, including Jindal Steel and Bajaj Consumer Care, said Dalal.
There is already
Groww only needs to look at the Esop battles of foodtech giant Eternal (formerly Zomato), insurance marketplace PB Fintech, digital-payments firm One 97 Communications, and fashion retailer Nykaa, to know what tips the scale in favour of investors or employees.
These new-age tech companies, that’ve been listed since 2021, are now worth about $140 billion, according to a
Credits
Written by Arundhati Ramanathan
Edited by Abhijith S Warrier
Lede illustration by Kavipriya OG
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